- Region: Europe
April 30, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on April 29 (Moscow time) a memorandum of understanding (MOU) with Vnesheconombank (VEB), an official financial institution wholly-owned by the Government of Russian Federation and the Russian Direct Investment Fund (RDIF), which is managed by a wholly-owned subsidiary of VEB,1 on establishing the Russia-Japan Investment Platform (hereinafter the "Platform"). The signing took place during the visit of Prime Minister Shinzo Abe to Russia.
- The Platform is a framework of collaboration among JBIC, RDIF and VEB for the projects in which Japanese companies participate with a view to supporting expansion of business operations and increasing technological presence in Russia. The discussion on the Platform began in response to a proposal made to the Japanese government by the Russian government, which had expectations on promoting Japanese investment and the introduction of Japan's advanced technologies.
- The Platform differs from a fund. Its mechanism is as follows: JBIC and RDIF collaborate in proposing and selecting projects; in the case where both sides reached agreement on the projects, they consider the most appropriate financing schemes for individual projects; and JBIC, RDIF and VEB respectively provide equity, loans and other facilities. The combined total amount of projects to be handled by the Platform is expected to be one billion U.S. dollars. The eligible projects to be considered cover a wide range of areas: such as, projects in the Far East and East Siberian region, including those for infrastructure development; projects for introducing new technologies in urban development such as smart cities; projects for introducing advanced medical technologies and equipment; alternative energy projects; coal and other mineral resource development projects; and projects in the manufacturing and service sectors.
- JBIC will contribute to support Japanese companies' business deployment in Russia through close collaboration with RDIF and VEB, by drawing on its various financial facilities and schemes, thereby contributing to maintaining and improving the international competitiveness of Japanese industries.
- *1 RDIF is an investment fund established in 2011 with the objective of developing domestic industries in Russia and activating investment. It is managed by RDIF Management Company (contracting party of this MOU), a wholly-owned subsidiary of VEB.